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As a landlord, you’ll know that there’s a lot more to running a successful buy-to-let business than just handing over the keys to your tenants and watching the profits come in. One of the biggest expenses a landlord has to contend with is maintenance, but how much should a landlord be paying in maintenance fees?
Since budgets can be tough for landlords to manage, property maintenance costs can quickly eat into your profits, so it’s important to know where to save and how to spend wisely when maintaining a property.
The Cost of Maintaining a Rental Property
While property maintenance costs are sometimes shared between tenants and landlords, it’s still the case that a landlord could find themselves having to find thousands a year to keep their property in good condition. In fact, research suggests that the annual cost of maintaining a property is an average of £2,864 across the UK, with landlords in London facing even higher figures of £5,379.
A tenant may be responsible for keeping the property tidy and in good working order, but a landlord has legal responsibilities to maintain the home their tenants live in. Not only do items of furniture and textiles need to meet certain health and safety standards, but other safety checks need to be carried out every year.
For example, from 2021, regulations regarding electrical systems need to adhere to the guidelines set out in the 18th Edition of the Wiring Regulations, and any electrical installations need to be tested by a qualified electrician at least every five years. Likewise, landlords have legal responsibilities regarding gas safety, with the HSE stating that by law gas pipework, flues and appliances need to be kept in a safe condition, annual gas safety checks need to be carried out and records should be kept on each and every safety check.
Property maintenance may seem like an expense you want to put off paying, but the reality is that neglecting maintenance leaves your property in disrepair sooner than necessary and could result in you finding it harder to rent the property out in the future or having to drop your rental prices. Essentially, by spending money on maintenance, you’re avoiding costly repairs later on and ensuring you can bring in the highest possible revenue from your property.
What’s Included in Maintenance Costs?
Maintenance costs naturally vary depending on the type of property you have, the size of the property, and the age of it. But regardless of these variables, landlords will need to deal with general repairs such as boiler issues and replacing white goods and appliances, as well as refurbishments and decoration, such as upgrading carpets every 5-7 years and redecorating every 3 years or before each new tenant.
There’s also exterior maintenance to think about such as replacing missing roof tiles, cleaning the gutters, repairing broken fence panels, or making sure windows and frames are in good condition. Much of what landlords need to spend on maintaining a rental property is actually time, especially if you have a portfolio of properties to manage. In those instances, having a property management company handle these details for you or using management software will streamline the whole process.
How To Save Money on Property Maintenance for Your Rental Property
Now we’ve explored what property maintenance involves, the costs you can expect and why you should invest in maintenance, we can now look at how you can keep your properties in the best condition without it costing a fortune.
Do It Yourself
Being able to tackle your own repairs can come in very handy in an emergency, and could save you quite a bit of money down the line. From decorating to basic plumbing tasks or repairing appliances, if you can take on those tasks for yourself without needing to contract a tradesperson, you may find that you can save on maintenance fees.
It could even be worth investing in a course to teach you the basics, such as a basic electrical maintenance course which teaches you how to safely replace basic electrical accessories and equipment on a like-for-like basis, such as switches, fans, electric showers and more. Similarly, a basic plumbing course could help you save money on repairing leaky taps or installing dishwashers and washing machines.
Don’t Neglect Repairs
The faster you can act on repairs when they’re needed, the cheaper it will be. It also means that you and your tenants won’t be facing serious issues if something develops further. It’s tempting to leave it and hope the problem resolves itself, but in reality, dealing with it quickly will save you money in the long run.
Invest in Quality Equipment and Services
Choosing the cheapest furnishings and appliances, or opting for a cheaper plumber or electrician who hasn’t come with a recommendation is a false economy. This is because the cost of repairs and replacements are likely to be higher over the course of the following years than if you paid a little more upfront. From fridges and freezers to washing machines, sofas and mattresses, you don’t need to blow the budget but it’s not worth going to the opposite end of the spectrum and only buying the cheapest you can find.
Keep Your Decorations Simple
The more grand and detailed your decoration is, the harder it will be to keep it looking its best. You don’t need to go overboard with the decor to keep your property looking nice and comfortable for tenants, and simpler decor will be easier to maintain and cheaper too. However, while it’s popular to give a clean first impression, avoid painting everything white as it’s hard to maintain. A neutral mid-tone will wear better and be more forgiving over time.
Buy Landlord Insurance
Landlord insurance is vital when you’re renting out a property, and searching for the right deal will save you money if and when something goes wrong. Investing in good quality contents or accidental damage cover will protect you and your property if something goes wrong.
Don’t Go With the First Quote You Receive
In an emergency, you may be tempted to just go with the first tradesperson you speak to, but you could wind up paying over the odds. Do your research and get at least three quotes before agreeing to any work so you can be confident you’ve found a competitive price.
Paying to maintain a home you’re not living in may seem like money down the drain, but ultimately you’re investing in your buy-to-let business and ensuring that you retain your reputation as a responsible landlord.
